function [Lambda_hat, Vn_hat] = FM(dPt, dFt, Delta_n)

    K         =      size(dFt,1);
    M         =      size(dPt,1);
    n         =      size(dPt,2);
    Tn        =      n*Delta_n;
    
    dPtbar                 =      dPt - repmat(mean(dPt,2),1,n);% 
    dFtbar                 =      dFt - repmat(mean(dFt,2),1,n);% 
    betahat = dPtbar * dFtbar'*inv(dFtbar*dFtbar');
    Lambda_hat   =  inv(betahat'*betahat) * betahat'* mean(dPt,2)/Delta_n;
    Lambda_t     =  inv(betahat'*betahat) * betahat'* dPt;
    Vn_hat       =  var(Lambda_t)/n/Delta_n^2;  
    

end